Payment by check, travelers check or money order is a popular method of payment in retail sales. The use of a check rather than cash or credit card is convenient for the customer and provides security by allowing the customer to carry less cash. Accepting regular checks, travelers checks or money orders as a form of payment is advantageous to merchants because of customer's desires to pay in this fashion. However, it is important for merchants to verify a check or travelers check before acceptance to reduce loss due to forgeries, bad checks, returned checks, and lost or stolen travelers checks.
Existing check verification systems use a Magnetic Ink Character Recognition (MICR) reader located at the point of sale terminal, reading a MICR code printed on the check. Such systems are not usable at all with travelers checks or money orders. Generally, when used, these MICR readers have no other use than to read magnetic characters from a check. A business owner may desire such a check verification system but may not want to invest in a MICR reader which is used exclusively for check verification.
Some existing check verification systems require substantial interaction by the merchant such as entering the amount of the sale, the check number, the bank code, and other data. These manual operations by the merchant delay completion of the sale and cause other customers in a check-out line to wait longer. Therefore, it is important for a check verification system to function quickly and require a minimal amount of interaction by the merchant, additionally giving the merchant a sense of security that he will receive the funds due to him by accepting the check, travelers check or money order.